U.S. Congressman Sam Johnson (R-TX), Chairman of the House Committee on Ways and Means Subcommittee on Social Security, and U.S. Congressman Geoff Davis (R-KY), Chairman of the House Committee on Ways and Means Subcommittee on Human Resources, announced today that the Subcommittees will hold a joint oversight hearing on work incentives in Social Security disability programs.  The hearing will take place on Friday, September 23, 2011 in 1100 Longworth House Office Building, beginning at 9 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only.  However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.  A list of invited witnesses will follow.

BACKGROUND:

The Social Security Administration (SSA) administers two programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), which together provide benefits each year to nearly 14 million beneficiaries unable to work because of severe disabling conditions.  The SSDI program pays benefits to those who have sufficient past employment covered by Social Security to qualify.  The SSI program pays benefits to those who currently have limited income and assets, regardless of prior work history. 

After being awarded benefits based on an inability to work, individuals may attempt to return to work and are offered a variety of programs and supports provided by the SSA.  In the most recent beneficiary survey, 40 percent of beneficiaries were interested in working, yet in 2009, only one half of one percent left the rolls to return to work.  The experience of a cohort of new SSDI beneficiaries tracked over 10 years showed that nearly 30 percent worked at some time, and 6.5 percent were able to sustain earnings sufficient to have their benefits suspended.    

The Ticket to Work and Work Incentives Improvement Act of 1999 (P.L. 106-170) established the Ticket to Work and Self-Sufficiency Program, expanded the availability of health care coverage, and provided for demonstration projects and studies.  The Ticket to Work Program, administered by the SSA, increases choice in obtaining rehabilitation and vocational services, and provides greater opportunities for SSDI and SSI recipients to receive assistance to help them return to work. 

Services are furnished through the current system of state Vocational Rehabilitation (VR) agencies or a ticket holder's choice of an approved public or private sector, program-specific Employment Network (EN) to assist them in entering or re-entering the workforce.  When the ticket program was implemented, the SSA automatically issued tickets to most adult beneficiaries on the rolls, and has continued to issue them to new beneficiaries.  Through June of this year, according to the SSA, of the approximately 12.7 million tickets that have been issued since the program’s inception, 290,189 or approximately 2.3 percent have been assigned to an EN or VR agency.

In July 2008, the SSA made major regulatory changes to the Ticket to Work program in an effort to increase participation by ENs and beneficiaries.  These changes, however, have not been in place long enough for an accurate assessment of their impact. However, a May 2011 Government Accountability Office (GAO) assessment concluded “at this time, the agency [SSA] still lacks critical management and oversight mechanisms to assess whether the program is achieving its original purpose, and ultimately, whether the program is viable.”

The Ticket to Work Act also authorized two programs now known as the Work Incentive Planning and Assistance (WIPA) Program and the Protection and Advocacy for Beneficiaries of Social Security (PABSS) Program.  Under the WIPA program, SSA funds community-based organizations to assist beneficiaries in understanding and utilizing SSA’s complex work incentives policies.  Under the PABSS program, SSA funds protection and advocacy systems to provide assistance to help beneficiaries secure, maintain, or regain employment.  The authorization for both programs will expire on September 30, 2011, but existing funding permits WIPAs to continue providing services until June 30, 2012 and PABSS programs to continue serving their clients until February 29, 2012.  

SSA is also developing or conducting several demonstration projects to test new work incentive policies for Social Security disability beneficiaries, including a sliding scale benefit reduction.  However, because SSA’s demonstration authority for disability insurance beneficiaries expired in December 2005, SSA can continue demonstrations already initiated, but cannot begin new projects.  Reports issued by the GAO in 2004 and 2008 raised concerns about SSA’s management of its demonstration projects.  The President’s FY 2012 budget included a proposal to reauthorize for five years SSA’s demonstration authority for the DI program and require the Commissioner to conduct a demonstration project testing alternative methods of treating work activity by DI beneficiaries.

Lastly, past testimony before the Subcommittees has reported that former beneficiaries have been overpaid tens of thousands of dollars due to SSA’s delays in terminating benefits, even if beneficiaries have informed the agency that they are working.  The threat of receiving large overpayments, which must later be repaid, can be a significant work disincentive for disability beneficiaries. 

In announcing the hearing, Chairman Sam Johnson (R-TX) stated, “Those receiving disability benefits who want to work are looking for a hand up, not a hand out, to help them achieve a better life for themselves and their families.  Now, more than ever, how every taxpayer dollar is spent matters.  Programs that don’t achieve results must be changed or must end.  This hearing will help us determine whether the work incentive programs are getting those who can, back to work and a life of self sufficiency.”   

Chairman Geoff Davis (R-KY) went on to add, “Work lets individuals build a better life for themselves and their families.  We should help individuals with disabilities who want to work to achieve that better life.  That starts with reviewing what we are doing now to assist individuals with disabilities who want to work, and then holding SSA and its work incentive programs more accountable for improving on and achieving that critical goal.”

FOCUS OF THE HEARING:

The hearing will focus on the current work incentives in the SSDI and SSI programs, their impact on the number of individuals exiting the benefit roles, including the data and reports documenting such impact.  The Subcommittees will also examine recommended performance standards to guide future evaluations of work incentives programs, with particular focus on Ticket to Work, WIPA, PABSS, and Vocational Rehabilitation Services.  In addition, ongoing and proposed SSDI demonstration projects will also be reviewed. 

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, https://waysandmeans.house.gov, select “Hearings.”  Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.”  Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word or WordPerfect document, in compliance with the formatting requirements listed below, by the close of business on Friday, October 7, 2011.  Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-1721 or (202) 225-3625.

FORMATTING REQUIREMENTS:

The Committee relies on electronic submissions for printing the official hearing record.  As always, submissions will be included in the record according to the discretion of the Committee.  The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines.  Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below.  Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All submissions and supplementary materials must be provided in Word or WordPerfect format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.

The Committee seeks to make its facilities accessible to persons with disabilities.  If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested).  Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.

Note: All Committee advisories and news releases are available on the World Wide Web at http://www.waysandmeans.house.gov/.